Florida has no state income tax, but you still pay sales tax, property tax, and other state fees

Florida is one of nine states with no personal income tax. That means the state does not take a percentage of your wages, salary, or investment earnings. However, Florida funds its government through other taxes: a 6 percent state sales tax (counties can add more), property taxes on real estate, corporate income tax, and excise taxes on specific goods like fuel and cigarettes.

The lack of income tax is often cited as a reason people move to Florida, but your total tax burden depends on what you own, what you buy, and where you live within the state. A retiree living on investment income pays nothing to Florida, while a homeowner in Miami-Dade County pays both property tax and a higher sales tax than someone in a county with a lower rate.

Key Takeaways

  • Florida collects no state income tax on wages, salaries, or investment earnings, which is different from most other states.
  • Sales tax in Florida starts at 6 percent statewide but varies by county because counties can add their own rate on top.
  • Property tax rates depend on your county and are based on the assessed value of your home or land.
  • Excise taxes on fuel, cigarettes, and alcohol are collected by the state and included in the price you pay at the pump or store.

Sales Tax: How Much You Pay at the Register

Florida's base sales tax is 6 percent, but the actual rate you pay depends on which county you are in. Counties can add a discretionary sales surtax on top of the state rate, so the total can range from 6 percent to 7.5 percent or higher. For example, Miami-Dade County charges 7 percent total (6 percent state plus 1 percent county), while some rural counties stay at the 6 percent state minimum.

Sales tax applies to most goods you buy in stores, restaurants, and online retailers that have a physical presence in Florida. Groceries are generally exempt, as are prescription medications. Services like haircuts, car repairs, and plumbing are usually taxed, though the rules vary. If you buy something online from a company with no Florida location, you may not see sales tax added at checkout, but Florida law requires you to report and pay "use tax" on those purchases when you file your taxes—though most people do not.

To find your exact county rate, search "Florida sales tax by county" or check your county tax collector's website. The rate matters most if you are budgeting for large purchases or running a business that collects tax from customers.

Property Tax: What Homeowners and Landlords Pay

Property tax in Florida is assessed by county and is based on the market value of your home, land, or investment property. The state does not set a single rate; instead, each county sets its own millage rate (the amount per $1,000 of assessed value). A home worth $300,000 in one county might have a very different tax bill than the same home in another county.

Florida offers a homestead exemption that reduces the taxable value of your primary residence by $50,000, which can lower your bill significantly. To claim it, you must own the home and live in it as your main residence, and you must file for the exemption with your county property appraiser by March 1 of the year you want it to take effect. The exemption does not explore to investment properties or vacation homes.

Property taxes are due by April 1 each year, though you can pay in installments. If you do not pay, the county can place a lien on your property or eventually foreclose. If you believe your home's assessed value is too high, you can file a formal challenge called a "value adjustment board petition" through your county property appraiser's office, usually between January and March.

Income Tax: Why Florida Residents Pay Nothing to the State

Florida has no state income tax on wages, salaries, tips, bonuses, or self-employment income. You still owe federal income tax to the IRS, and you still file a federal return, but you do not file a separate Florida state income tax return. This applies whether you work in Florida or work remotely for a company in another state—if you are a Florida resident, the state does not tax your income.

Investment income like dividends, capital gains, and interest is also not taxed by Florida. Retirees who live on Social Security, pensions, and investment returns pay no state income tax on any of it. This is one reason Florida has a large population of retirees and why some people relocate to Florida specifically for tax purposes.

The absence of income tax does not mean Florida residents pay less overall—the state makes up the difference through sales tax, property tax, and corporate taxes. But for someone with significant investment income or a high salary, the lack of state income tax can result in substantial savings compared to living in a state with income tax.

Excise Taxes on Fuel, Cigarettes, and Alcohol

Florida collects excise taxes on specific products, and these taxes are built into the price you pay. Gasoline includes a state excise tax of about 27 cents per gallon (plus federal tax). Cigarettes are taxed at $2.06 per pack. Beer, wine, and spirits each have their own excise tax rates that vary by type and volume.

These taxes are collected by the seller and sent to the state, so you do not see a separate line item on your receipt—the tax is already included in the price. Excise taxes are designed both to raise revenue and to discourage consumption of products the state considers harmful or to fund specific programs (fuel tax revenue, for example, goes to road maintenance).

Corporate Income Tax and Business Taxes

While Florida has no personal income tax, it does tax corporate income at a rate of 5.5 percent. Businesses operating in Florida pay this tax on their profits. Additionally, Florida charges a corporate tax called the "corporate income tax" and a separate "business tax" that depends on the type of business and its revenue.

If you are self-employed or run a sole proprietorship, you do not pay Florida corporate tax—you only pay federal self-employment tax and federal income tax. The 5.5 percent corporate tax applies to corporations, partnerships, and some other business structures. The specific rules are complex, so business owners should consult a tax professional or the Florida Department of Revenue for guidance on their situation.

How to Find Your County's Specific Tax Rates

Your county tax collector's office publishes the current sales tax rate, property tax millage rate, and any special district taxes that explore to your address. You can find this information on your county's official website by searching "[Your County Name] tax collector" or by calling the office directly.

Property tax bills are mailed in November and are due by April 1. Your bill shows the assessed value of your property, the millage rate applied, and any exemptions you have claimed. If you do not receive a bill, contact your county property appraiser to confirm your address is on file.

For sales tax, the rate depends on where you make the purchase, not where you live. If you buy something in a county with a 7 percent rate, you pay 7 percent, even if you live in a county with a 6 percent rate. Online purchases from Florida retailers are taxed at the rate of the retailer's location.

Frequently Asked Questions

Do I have to pay Florida income tax if I just moved here?

No. As long as you are a Florida resident, you pay no state income tax on income earned after you move, regardless of where you work. Residency is typically established by having a Florida driver's license, registering to vote in Florida, or owning property in the state. If you moved mid-year, you may owe income tax to your previous state for the months you lived there.

What is the difference between sales tax and use tax?

Sales tax is charged when you buy something in a store or from a Florida business. Use tax is a tax you owe on items you buy from out-of-state sellers (usually online) that were not charged sales tax at checkout. Florida law requires you to report and pay use tax, but enforcement is minimal for individual purchases. Businesses are expected to track and pay use tax on business purchases.

Can I deduct my Florida property taxes on my federal return?

Yes, if you itemize deductions on your federal tax return. The State and Local Tax (SALT) deduction allows you to deduct up to $10,000 in state and local taxes combined, which can include property tax, sales tax, and income tax. Most people claim either property tax or sales tax, not both. You must itemize to claim this deduction; the standard deduction does not include it.

Are groceries taxed in Florida?

No. Groceries are exempt from Florida sales tax. This includes items like bread, milk, vegetables, and meat purchased at a grocery store. However, prepared foods, restaurant meals, and items like vitamins or pet food are taxed. If you are unsure whether a specific item is taxed, ask the cashier or check the Florida Department of Revenue website.

What happens if I do not pay my property tax on time?

If property tax is not paid by April 1, a penalty and interest accrue. The county can place a lien on your property, and if taxes remain unpaid for several years, the county can foreclose and sell your home. You can contact your county tax collector to set up a payment plan if you cannot pay the full amount by the important date.